What is an ATS? Complete Guide

An Applicant Tracking System (ATS) is a software application that automates recruitment. Capabilities like handling job advertisements, applications, candidate data, and communication assist businesses in streamlining the hiring process. This article extensively overviews ATS’s capabilities, advantages, and implementation tips.

What is an ATS?

Recruiters and HR departments utilize the Applicant Tracking System (ATS) as a software tool to oversee the entire hiring process. In addition to automating screening, tracking applicants’ advancement through the hiring process, and facilitating communication with candidates, it also stores and organizes candidate data. It simplifies and automates many recruitment-related operations, including advertising job vacancies, gathering and organizing resumes, screening candidates, and tracking applicants through the various stages of the hiring process. Examples of ATS software include Lever, Greenhouse, Smartrecruiters, etc.

Functions of ATS

These are the primary functions and duties of an ATS:

1. Distribution and Posting of Jobs

• Make Job Postings: This feature enables recruiters to make thorough job advertisements.

• Multi-Channel Posting: To ensure widespread awareness, job postings are automatically posted to many job sites, company career pages, and social media channels.

2. Resume Parsing and Storage

• Resume Gathering: The ATS gathers resumes from email, direct applications, job boards, and other sources.
• Data Extraction: The process of parsing resumes to extract important details including contact information, employment history, education, and skills.
• Profile Creation: Utilizing the data retrieved, this process automatically generates candidate profiles for convenient maintenance and review.

Read more: What is resume parsing?

3. Filtering and Screening of Candidates

• Keyword Matching: Application submissions are filtered using keyword matching, which looks for experience, education, and other factors pertinent to the job description.
• Automated Ranking: Select the best candidates by ranking them according to predetermined standards.

4. Application Monitoring and Administration

• Pipeline Management: Applicants are tracked through the various stages of the employment process (e.g., application, screening, interview, offer) using pipeline management.
• Database Maintenance: Keeps track of all applications in a single, centralized database, which facilitates the retrieval and examination of candidate data.

5. Interview Scheduling

• Calendar Integration for Interview Scheduling: This feature integrates interview scheduling with calendar systems.
• Automated Invites: Notifies interviewers and candidates of upcoming interviews and extends invitations automatically.

6. Instruments of Communication

• Automated Emails: Provide candidates with confirmation emails, rejection letters, interview dates, and other pertinent information.
• Templates: Offers editable email templates to ensure standardized correspondence.

7. Working Together and Providing Feedback

• Teamwork: Facilitates sharing of candidate profiles, comments, and candidate ratings among team members.
• Feedback Collection: Compiles interviewer comments and incorporates them into the candidate’s profile for a thorough assessment.

8. Analytics and Reporting

• Measures Monitoring: Keeps tabs on important hiring parameters like source of hire, cost per hire, and time to hire.
• Performance Reports: Create reports to evaluate the success of recruitment tactics and pinpoint areas in need of development.

9. Security of Data and Compliance

• Regulatory Compliance: Verifies that hiring practices adhere to all applicable employment laws and rules, including those about equal employment opportunity (EEO).
• Data Security: Safeguards candidate data by data protection laws and preserves privacy.

10. Integration and Customization

• Custom Procedures: This enables hiring procedures to be tailored to the unique requirements of the company.
• System Integration: Provides smooth data flow by integrating with various HR systems, including payroll, onboarding software, and HRIS.

How Do Applicant Tracking Systems (ATS) Work?

The following is a detailed explanation of how an ATS operates:

1. Distribution and Posting of Jobs

• Job Creation: Recruiters enter job descriptions, qualifications, and prerequisites into the applicant tracking system (ATS) and post jobs.
• Multi-Channel Posting: To broaden the job opening’s audience and visibility, the applicant tracking system (ATS) simultaneously posts job openings to various job boards, company career pages, and social media platforms.

2. Resume Collection and Parsing

• Application and Resume Submission: Applicants send their applications and resumes by email, job boards, or the company’s career page.
• Data Extraction: The applicant tracking system parses resumes to extract essential data, including contact information, employment history, education, and abilities, and transforms it into

3. Filtering and Screening of Candidates

• Keyword Matching: To filter and rank applications, the system makes use of pre-established keywords and criteria. For instance, it searches for particular abilities, credentials, and experience that are listed in the job description.
• Automated Scoring: To assist recruiters in finding the best candidates quickly, candidates are evaluated and scored according to how well their profiles match the job requirements.

4. Applicant Tracking and Management

• Candidate Profiles: Each candidate’s complete profile, including their cover letter, résumé, and any other supporting materials, is created and stored by the applicant tracking system (ATS).
• Pipeline Management: From application and screening to interview and offer, candidates are followed at each stage of the hiring process.

5. Interaction and Teamwork

• Automated Communication: The applicant tracking system (ATS) notifies candidates via automated emails that their applications have been received, sets up interviews, and provides status updates.
• Teamwork: Using an ATS, members of the hiring team can view candidate profiles, provide feedback, and comments, and work together to make decisions.

6. Scheduling Interviews

• Calendar Integration: The ATS connects calendar programs (such as Google Calendar or Outlook) to arrange interviews.
• Automated Scheduling: This reduces administrative load by sending out invites and reminders automatically to interviewers and candidates.

7. Analytical Reporting

• Metrics and Reports: Several recruiting metrics, including time-to-hire, cost-per-hire, source of hiring, and status of the candidate pipeline, are produced by the applicant tracking system (ATS).
• Data-Informed Choices: HR managers and recruiters can improve their recruitment strategy and make well-informed judgments with the aid of these insights.

8. Data Security and Compliance

• Regulatory Compliance: The ATS ensures that employment laws and rules, like the Equal Employment Opportunity (EEO) requirements, are followed during the hiring process.
• Data Protection: It conforms with data protection laws (such as the GDPR) and safeguards candidate data to preserve privacy.

9. Integration and Personalization

• Custom Workflows: Recruiters can set up stages and criteria in workflows that correspond with their hiring process to make them specifically match the needs of their firm.
• System Integration: To guarantee smooth data flow and consistency, the ATS integrates with other HR systems, including payroll, resume screening software, and Human Resource Information Systems (HRIS).

Benefits of Using an ATS

Utilizing an Applicant Tracking System (ATS) provides many benefits that optimize the hiring procedure and augment overall effectiveness. The following are the main advantages of ATS use:

1. Enhanced Productivity

• Automated Processes: An applicant tracking system (ATS) greatly reduces the time and effort needed by automating repetitive operations like posting job listings, organizing resumes, and setting up interviews with tools like Ducknowl.
• Simplified Workflows: It streamlines the entire hiring process, making it more manageable by organizing it.

2. Improved Arranging

• Centralized Data: It is simple to access, manage, and retrieve all candidate data because it is kept in a single database.
• Monitoring and Administration: To make sure no procedures are overlooked, the system keeps track of applicants as they move through the recruiting process.

3. Improved Prospective Experience

• Fast Communication: Candidates are notified via automated emails on the status of their applications, the dates of their interviews, and the next steps.
• Professional Interaction: A candidate’s impression of the organization is improved by timely and consistent communication.

4. Shorter Hiring Lead Time

• Fast Identification: The greatest prospects can be found more rapidly thanks to automated screening and rating.
• Faster Processing: Automated jobs and streamlined workflows cut down on delays, which accelerates the hiring process as a whole.

5. Better Hiring Quality

• Improved Matching: By ensuring that applicants are assessed according to pertinent criteria, keyword matching and automated scoring increase the likelihood of discovering the greatest fit.
• Thorough Evaluation: Hiring teams can make better hiring decisions by using collaboration technologies to discuss and analyze candidates as a group.

6. Improved Cooperation

• Team Participation: Several team members have access to candidate profiles and can exchange feedback, comments, and views.
• Unified Platform: Improved coordination and communication among the hiring team is facilitated by a single system for all recruitment-related tasks.

7. Observance and Documentation

• Regulatory Compliance: Ensuring compliance with employment rules and regulations, including equal employment opportunity (EEO) norms, is known as regulatory compliance.
• Audit Trails: Maintains track of every hiring action, offering a transparent audit trail for legal requirements.
• Data-Driven Insights: Produces reports on important recruitment indicators, which aid in evaluating the success of hiring tactics and pinpointing areas in need of development.

8. Financial Savings

• Decreased Administrative Expenses: An ATS lessens the requirement for substantial administrative support by automating manual tasks.
• Reduce Hiring Expenses: Lower total recruitment costs result from quicker and more effective hiring procedures

9. Scalability

• Handling Volume: An ATS is appropriate for both small and large businesses since it can easily handle a huge volume of applications.
• Growth Support: As the business expands, it may grow with it, meeting more intricate and demanding hiring requirements.

10. Improved Branding for Employers

• Consistent Communication: Prompt, courteous communication with candidates improves the company’s reputation.
• Positive Experience: An applicant’s experience is enhanced by a seamless and effective application procedure, which enhances the employer’s brand.

11. Data Protection and Security

• Data Security: Uses access controls and safe storage to safeguard candidate data.
• Privacy Compliance: Makes sure that candidate data is protected by adhering to data protection laws (like the GDPR).

How to Choose the Right ATS

Choosing the appropriate Applicant Tracking System (ATS) is essential to streamlining your hiring procedure. This is a thorough guide to help you select the best ATS for your business:

1. Determine What You Need

• Volume of Hiring: Figure out how many employees you’ll need to take on and how many applications you’ll get. Here are some strategies to handle high-volume hiring.
• The Intricacy of Workflows: Evaluate how complicated your hiring processes are, including posting jobs, screening candidates, conducting interviews, and onboarding.
• Particulars: Determine which features are necessary, such as compliance tracking, candidate communication, resume parsing, and collaboration tools.

 Also Read: Resume Screening Tips

2. Establish a Budget 

• Cost Consideration: Establish your spending limit for an ATS, taking into account both one-time and recurring membership fees.
• ROI: Assess the possible ROI by taking into account the time and money savings, lower hiring expenses, and higher hiring quality that the applicant tracking system (ATS) can provide.

3. Examine and Contrast Your Options

• Market Research: Look at the offerings of several ATS suppliers in-depth.
• User Reviews and Ratings: To learn the benefits and drawbacks of each system, read user reviews and ratings on websites like Capterra, G2 Crowd, and Trustpilot.
• Feature Comparison: Comparing features, costs, and support options across various ATS solutions is important.

4. Ask for Trials and Demos

• Product Demos: Ask ATS suppliers for live demos so you may observe their systems in operation and ask any questions you have about their offerings.
• No-Cost Trials: Use the free trials available to evaluate the system’s functionality, usability, and workflow compatibility.

5. Evaluate Friendliness

• Simple Interface: To guarantee that recruiters and hiring managers will use your applicant tracking system (ATS) to their full potential, pick one with a simple, easy-to-use interface.
• Ease of Use: Assess how simple it is to organize candidate information, create job listings, and use other features.

6. Examine Integration 

• Capabilities with Current Systems: Make sure the ATS can easily interact with your current HR systems, including payroll, onboarding software, and HRIS.
• Third-Party Tools: See if there are any possibilities for integration with the other tools you use, such as calendars, email, and teamwork programs.

7. Consider Your Customization Options

• Custom Workflows: Check if the applicant tracking system (ATS) enables you to modify workflows to correspond with your unique hiring procedures.
• Forms and Templates: Make sure you can make and modify templates for emails, assessment forms, and job listings.

8. Think About Scalability

• Growth Potential: Select an applicant tracking system that can grow with your company as it does and adapt to your changing hiring requirements.
• Flexibility: Make sure the system can accommodate a rise in users, applications, and job ads as your business grows.

9. Review Customer Support

• Examine Your Options for Customer Support: Examine the quality of the customer service offered, encompassing online resources, phone support, email help, and live chat.
• Training and Onboarding: Take into account if the supplier provides user manuals, training sessions, and onboarding support to aid you in getting going.

10. Examine Compliance and Security

• Data Security: Verify that the applicant tracking system (ATS) has strong security features, such as encryption, safe storage, and access controls, to safeguard candidate data.
• Compliance: Confirm that the system conforms to applicable employment legislation and data protection standards, such as GDPR.

11. Feedback from Users

• Request User and Team Feedback: To get feedback and preferences, involve your recruitment staff and other stakeholders in the evaluation process.
• Pilot Examining: Undertake a pilot study involving a limited number of users to obtain input regarding the functionality and efficiency of the system.

Implementing an ATS

Implementing an Applicant Tracking System (ATS) can significantly enhance your ability to attract and hire top talent. Here’s a step-by-step guide to help you implement an ATS effectively:

1. Preparation and Planning

• Define Objectives: Clearly outline what you aim to achieve with the ATS, such as reducing time-to-hire, improving candidate experience, or enhancing compliance.
• Assemble a Project Team:  Include representatives from HR, IT, and recruitment teams.

2. Selecting the Right ATS

• Research and Shortlist: Research ATS vendors and shortlist those that match your requirements. Request demos and free trials to evaluate the systems firsthand.
• Vendor Comparison: Compare the features of the shortlisted systems.

3. Implementation Planning

• Project Timeline: Set a timeline with key milestones for each phase of the implementation.
• Data Migration: Evaluate existing candidate data and determine what needs to be migrated.
• Integration Planning: Plan how the ATS will integrate with existing HR systems, payroll, and third-party tools. Identify necessary APIs and connectors for seamless integration.

4. Configuration and Customization

• System Setup: Define user roles and permissions based on your organization’s structure. Customize workflows to align with your recruitment processes.
• Customization: Create templates for job postings, emails, and evaluation forms. Customize the ATS to reflect your company’s branding.

5. Training and Change Management

• User Training: Conduct training sessions for all users, including recruiters, hiring managers, and IT staff.
• Change Management: Develop a communication plan to inform all stakeholders about the implementation process and benefits.

6. Testing and Quality Assurance

• System Testing: Test all functionalities of the ATS to ensure they work as expected. Test integrations with other systems to ensure seamless data flow.
• Pilot Testing: Run a pilot phase with a small group of users to identify any issues and gather feedback.

7. Go Live and Post-Implementation

• Go-Live Preparation: Perform final checks and ensure everything is in place for the go-live date. Communicate the go-live date and any necessary instructions to all users.
• Post-Implementation Support: Provide ongoing support to address any issues that arise post-implementation. Regularly review and refine the system to ensure it continues to meet your organization’s needs.

8. Evaluation and Optimization

• Performance Monitoring: Continuously monitor key metrics to assess the performance of the ATS. Collect feedback from users to identify areas for improvement.
• Optimization: Keep the system updated with the latest features and improvements from the vendor.

Types of ATS

It’s critical to pick an Applicant Tracking System (ATS) that complements your company’s unique requirements and HRM objectives. The primary ATS types to think about are as follows:

1. Standalone ATS

• Description: An application tracking and recruitment management system built specifically for that purpose.
• Functions: Contains standard functions like posting jobs, processing resumes, screening candidates, setting up interviews, and reporting.
• Ideal for: Small to medium-sized companies in need of a recruitment solution that is targeted and doesn’t include extra HR features.

2. Combined ATS

• Description: As a component of a larger Human Capital Management (HCM) or Human Resource Information System (HRIS) system.
• Functions: Integrates application tracking with payroll, benefits administration, personnel management, and performance reviews, among other HR tasks.
• Ideal for: Bigger businesses in need of an all-inclusive HR solution that allows for smooth data integration amongst various departments.

3. Recruitment CRM (Candidate Relationship Management)

• Description:  In addition to standard functionality, this system focuses on establishing and maintaining relationships with potential applicants.
• Features: Personalized communication, engagement tracking, talent pooling, and candidate nurturing techniques are all included.
• Ideal for: Businesses with constant hiring requirements, such as those in cutthroat sectors or with significant employee attrition.

4. Business ATS

• Description: A powerful, highly adaptable solution made for big businesses with intricate hiring procedures.
• Functions: Cutting-edge capabilities include worldwide compliance management, configurable workflows, AI-driven analytics, and comprehensive reporting.
• Ideal for: Big businesses with numerous locations, intricate hiring requirements, and a large number of applicants.

5. Cloud-Based ATS

• Description: This is an internet-accessible cloud-hosted software-as-a-service (SaaS) solution.
• Functions: It includes reduced upfront expenses, scalability, automated upgrades, and mobile accessibility.
• Ideal for: Organizations of all sizes seeking a scalable, adaptable solution with low IT overhead.

6. AI-Based ATS

• Description: Utilizes artificial intelligence to improve the hiring process in several ways.
• Functions: It includes applicant matching, automated communication, predictive analytics, AI-driven resume parsing, and bias reduction.
• Ideal for: Companies wishing to use cutting-edge technologies

Cost of Applicant Tracking System

The cost of an Applicant Tracking System (ATS) can vary widely based on several factors, including the size of the organization, the features required, and the pricing model of the vendor. Here’s an overview of the different cost components and what to consider when evaluating the cost of an ATS:

1. Pricing Models

• Subscription-Based Pricing: Most ATS providers offer subscription plans that are billed monthly or annually.
•  Pay-Per-Hire: Some ATS providers charge based on the number of hires made through the system.
• Pay-Per-User:  Charges are based on the number of users (recruiters or hiring managers) who will access the system.

2. Factors Influencing Cost

• Company Size: May find basic plans sufficient, typically ranging from $50 to $200 per month.
• Features and Functionality: Include job posting, resume parsing, and candidate tracking. Such as AI-driven analytics, automated communication, compliance management, and integration capabilities, which increase the cost.
• Number of Users: Typically cheaper, ideal for small teams or single recruiters. More expensive, and suited for larger teams needing collaborative features.
• Customization and Integration: Tailoring the ATS to specific needs can involve additional costs. Costs may increase if the ATS needs to be integrated with other HR systems, payroll software, or third-party tools.
• Implementation and Training: One-time setup fees can range from a few hundred to several thousand dollars, depending on the complexity of the implementation. Additional costs for training sessions to ensure your team can effectively use the ATS.
• Support and Maintenance: Usually included in subscription plans, but may be limited. Can incur extra charges, offering 24/7 assistance, dedicated account managers, and faster response times.

3. Additional Considerations

• Free Trials: Many ATS vendors offer free trials, allowing you to evaluate the system before committing.
• Hidden Costs: Be aware of potential hidden costs such as additional fees for extra users, data migration, or premium support.
• Return on Investment (ROI): Consider how the ATS can improve hiring efficiency, reduce time-to-hire, and enhance the quality of hires, potentially offsetting the initial costs.

Conclusion

Your hiring procedure can be completely transformed by utilizing an Applicant Tracking System (ATS), which will increase its effectiveness, and efficiency, and simplify it. You can guarantee a successful ATS implementation that satisfies the unique requirements of your company by adhering to an organized strategy, which includes planning and preparation, system selection, training, customization, and ongoing optimization.

An effective applicant tracking system (ATS) can shorten the hiring process, help you draw in top candidates, and improve the candidate experience overall. Additionally, it offers insightful information through data-driven decision-making, guaranteeing that your hiring strategy supports your company’s objectives.

To optimize the system’s benefits, keep in mind to include everybody involved at every stage of the process, offer sufficient training and assistance, and regularly review and improve the system. With the appropriate applicant tracking system, your business can create a strong and flexible hiring structure that adapts to evolving industry trends and helps you stay competitive in the talent market.

Read More: Top Ways to Automate Your Recruitment Process